A difficult year … (4th period)

Overview of published results of leading insurers on the Swiss market: SwissRe, Helvetia Holdings, Bâloise, Allianz Suisse and Generali.

• Shareholders approve increase in capital totalling 5 billion
• Confirmation of « admission » of Berkshire Hathaway, Warren Buffet’s investment Company, worth 3 billion
• Board of Directors proposes further increase in capital of 2 billion 
• Berkshire Hathaway will receive annual interest of 12% on their investment, due to mature in 2012. There is also an option to convert the loan to shares « after a minimum period of three years », giving a 24.8% stake in the capital of SwissRe
• The reinsurer may also repay the loan before the due date. The surrender price payable by the borrower would be 120%.
• S&P Rating: A/Stable/--

• Business volume up 3.8% to 5,712.3 million
• Life business +6% to 3,067.0 million
• Non-life business –1.3% to 2,560.4 million
• Combined ratio down to 89.9% (against 94.5% in 2007)
• Solvency ratio 207.7%, i.e. more than twice the required ratio
• Profit 230.5 million (against 402 million in 2007)

• Proposed dividend 13.50 per share (against 15.00 in 2007)
• Conclusions of insurer: operating profit excellent, capital remaining solid, dividend payout attractive
• Convinced of the strength of their business model, proven in difficult times, Helvetia intend to continue as a reliable partner for their customers and pursue their profitable growth strategy
• S&P Rating: A-/Stable/--

• Total premium income down 1% to 7.86 billion 
• Rise in gross life and non-life premiums of 1.2% to 6.95 billion
• Drop in investment-related premiums of 15.4% to 904.0 million
• Net profit down 52.7% to 386.7 million (820.1 million in 2007)
• Solvency ratio 196%
• Dividend unchanged at 4.50 per share
• The Group wishes to adopt a prudence stance when looking to the future, considering that the volatility of the money markets and economic uncertainty is likely to continue in future years
• S&P Rating: A-/Stable/--

• Premium income (gross) down 4.5% to 1,763.8 million (1,848.5 in 2007)
• Life-insurance premiums up 19.1% to 1,876 billion
• Accident and indemnity insurance down 4.6% to 1,764 million
• Operating profit down 15.4% to 198.2 million (234.1 in 2007)
• Net profit down 44.5% to 126.2 million

• Combined ratio 93.2% (against 93.5% in 2007)
• The Swiss insurer is gaining market shares
• The drop in annual profit is mainly due to the negative trend on the stock markets. 
• The management anticipates fiercer competition in present and in the coming years and intends to streamline its organisation and set up a customer service centre
• S&P Rating: AA-/Stable/--

• Premiums up 3.9% to 68.8 billion
• 70% drop in net profit to 861 million (against 2.92 billion in 2007). Impairment charges on the investment portfolio amount to 5 billion
• Volume of life premiums up 3.2% to 46.8 billion
• Volume of indemnity insurance premiums up 5.5% to 22 billion
• Combined ratio for non-life business 96.4% (against 95.8% in 2007)
• Dividend set at 0.62, 0.15 payable in cash and one share for every 25 held
• Without providing further detail, Generali are not setting targets for 2009, on the grounds that the economic and financial crisis makes forecasting « difficult »
• S&P Rating: AA/Negative/--

• SwissRe (13.03.09)
• Helvetia Holding (17.03.09)
• Baloise (18.03.09)
• Allianz Suisse (19.03.09)
• Generali (20.03.09)